kainexus - jacob stoller, the 3 primary assumptions of successful lean leaders

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Mark Graban VP of Customer Success [email protected] Three Primary Assumptions of Successful Lean Leaders Jacob Stoller Author, The Lean CEO [email protected]

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Page 1: KaiNexus - Jacob Stoller, The 3 Primary Assumptions of Successful Lean Leaders

Mark GrabanVP of Customer [email protected]

Three Primary Assumptions of Successful Lean Leaders

Jacob StollerAuthor, The Lean CEO

[email protected]

Page 2: KaiNexus - Jacob Stoller, The 3 Primary Assumptions of Successful Lean Leaders

Agenda & Logistics• Presentation (40 minutes)• Q&A (15 minutes)– Use the GoToWebinar

Meeting Panel to submit a question atany time

• Recording link & slides will be sent via email

Page 3: KaiNexus - Jacob Stoller, The 3 Primary Assumptions of Successful Lean Leaders

Three Primary Assumptions of

Successful Lean Leaders

Jacob StollerMarch 15, 2016

Page 4: KaiNexus - Jacob Stoller, The 3 Primary Assumptions of Successful Lean Leaders

© 2015 Jacob Stoller 4

Saved by the dashboard

Page 5: KaiNexus - Jacob Stoller, The 3 Primary Assumptions of Successful Lean Leaders

© 2015 Jacob Stoller 5

Primary Assumption: The safest way to get home is to watch your instruments and do what they say.

Page 6: KaiNexus - Jacob Stoller, The 3 Primary Assumptions of Successful Lean Leaders

© 2015 Jacob Stoller 6

Results ($)

Commands

Sloan’s Command and Control Dashboard

Gemba

Primary Assumption: Financial reports tell the truth about the business.

Page 7: KaiNexus - Jacob Stoller, The 3 Primary Assumptions of Successful Lean Leaders

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What the financials don’t tell us…

© 2016 Jacob Stoller

Waste

Variation

Employee disengagem

ent“3% of the problems have figures, 97% of the problems do not.” W. Edwards Deming

Page 8: KaiNexus - Jacob Stoller, The 3 Primary Assumptions of Successful Lean Leaders

The Lean CEOsMike Lamach, Ingersoll RandBob Chapman, Barry-WehmillerGeorge Koenigsaecker, Jake BrakeBob Brody, Franciscan Health CareHugo Levente Bara, SupremiaKevin Meyer, Specialty SiliconEd Byczynski, PLZ AeroscienceTom Everill, Northwest Center

Pat Lancaster, LantechArt Byrne, WiremoldPaul Steffes, SteffesSteve Brenneman, ATCKarl Wadensten, VibcoPierluigi Tosato, San BenedettoJohn Toussaint, ThedacareGary Kaplan, Virginia Mason

© 2016 Jacob Stoller 8

Mark Richards, AppvionJim Martin, Goodwill IndustriesJorge Pinto, Caetano BusMary Andringa, VermeerChris McBean, eLeatherEric Ries, The Lean StartupJim Lancaster, LantechBrian Walker, Herman Miller

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People

Information

Process

© 2016 Jacob Stoller

Three Primary Assumptions for Running the Business

Page 10: KaiNexus - Jacob Stoller, The 3 Primary Assumptions of Successful Lean Leaders

© 2015 Jacob Stoller 10

Bad Profits

Page 11: KaiNexus - Jacob Stoller, The 3 Primary Assumptions of Successful Lean Leaders

© 2015 Jacob Stoller 11

Information

Primary Assumption # 1

Customer value is the primary dashboard for success.

Page 12: KaiNexus - Jacob Stoller, The 3 Primary Assumptions of Successful Lean Leaders

It’s all about radical transparency.

12© 2016 Jacob Stoller

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© 2015 Jacob Stoller 13

Leadership

Commands Results True North Problems

Leadership

Page 14: KaiNexus - Jacob Stoller, The 3 Primary Assumptions of Successful Lean Leaders

“This is not for the weak of heart. This is so hard every single doggone day. Lean will surface all of your shortcomings and force you to deal with all the details.” Karl Wadensten, CEO, Vibco

© 2016 Jacob Stoller

Page 15: KaiNexus - Jacob Stoller, The 3 Primary Assumptions of Successful Lean Leaders

© 2015 Jacob Stoller 15

Art Byrne’s Customer Value Dashboard

Customer service %

Inventory turns

ProductivityQuality (defects)

Visual control

(5S)

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Letting go of the old way…

© 2015 Jacob Stoller 16

“You can write the report if you like, but I can guarantee you that I won’t read it.”

“Don’t look past the results.”

Art Byrne, Former CEO, Wiremold Mike Lamach, CEO, Ingersoll Rand

Page 17: KaiNexus - Jacob Stoller, The 3 Primary Assumptions of Successful Lean Leaders

Order Processing Engineering Procurement

Value is horizontal.

© 2015 Jacob Stoller 17

Production Shipping

Customer Value

Page 18: KaiNexus - Jacob Stoller, The 3 Primary Assumptions of Successful Lean Leaders

Re-thinking accountability

© 2015 Jacob Stoller 18

“Accountability is not about setting goals and then shaming people who don’t hit the goals. Accountability is about making sure that everybody understands what we’re trying to do.”

Jim Lancaster, CEO, Lantech Inc.

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© 2015 Jacob Stoller 19

Process

Primary Assumption # 2Continuous improvement of people and processes towards an ideal state leads to sustainable results.

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Continuous improvement as a strategy

Develop people so that people will improve processes in order to drive results.

Capital CostsAdded Headcount

WasteCycle TimesPhysical SpaceDefects

Competitive PositionGross MarginsCash

© 2015 Jacob Stoller 20

Page 21: KaiNexus - Jacob Stoller, The 3 Primary Assumptions of Successful Lean Leaders

A tough sell in the boardroom…

© 2015 Jacob Stoller 21

“..and then I opened the door.”Brian Walker, CEO, Herman Miller

Page 22: KaiNexus - Jacob Stoller, The 3 Primary Assumptions of Successful Lean Leaders

…and on the shop floor.

© 2015 Jacob Stoller 22

Jim Lancaster, CEO, Lantech Inc.

“It’s time for a cookie.”

Page 23: KaiNexus - Jacob Stoller, The 3 Primary Assumptions of Successful Lean Leaders

…and for professionals.

HR Program Designers

Problem Solving Coaches

Accounting Bean Counters

Financial Advisors

IT System Builders

Providers of Real Time Information

23© 2016 Jacob Stoller

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Financial Pressures

Unacceptable Outcomes

24© 2016 Jacob Stoller

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?“We should work on our process, not the outcome of our processes.” – Deming

© 2016 Jacob Stoller

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© 2015 Jacob Stoller 26

Primary Assumption # 3

People have a basic human need to do exceptional work, and will do so when barriers are removed. People

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Bob Chapman, CEO, Barry-Wehmiller

“All anyone asks for is a chance to work with pride.” - Deming

© 2016 Jacob Stoller

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The need for exceptional work

© 2015 Jacob Stoller 28

Page 29: KaiNexus - Jacob Stoller, The 3 Primary Assumptions of Successful Lean Leaders

A lasting partnership

© 2015 Jacob Stoller 29

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Now, over to you!

© 2015 Jacob Stoller 30

Is customer value seen through gemba your primary dashboard?Are you on a continuous improvement journey that never ends?Are your people empowered to do exceptional work?

Information

People

Process

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Our Next Webinar• Michael Lombard– “A management system

supported by KaiNexus”– April 19, 1 pm ET

• KaiNexus.com/webinar

Page 33: KaiNexus - Jacob Stoller, The 3 Primary Assumptions of Successful Lean Leaders

Thanks!• Web:

– www.kainexus.com– blog.kainexus.com– www.JacobStoller.com

• Past Webinars:– www.kainexus.com/webinars

• Social media:– www.twitter.com/kainexus– www.linkedin.com/company/kainexus– www.facebook.com/kainexus

Mark Graban@MarkGraban

[email protected]

Jacob Stoller@JacobStoller

[email protected]